SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form 10-Q
(Mark One)
/X/ Quarterly report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the quarterly period ended June 30, 1995
or
/ / Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the transition period from / / to / / .
0-11521
(Commission File Number)
SYSTEMS & COMPUTER TECHNOLOGY CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 23-1701520
(State or other jurisdiction (I.R.S Employer
of incorporation) Identification Number)
Great Valley Corporate Center
4 Country View Road
Malvern, Pennsylvania 19355
(Address of principal executive offices)
Registrant's telephone number, including area code: (610) 647-5930
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes /X/ No / /
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
13,956,481 Common shares, $.01 par value, as of August 4, 1995
Page 1 of 16 consecutively numbered pages
(PAGE)
SYSTEMS & COMPUTER TECHNOLOGY CORPORATION AND SUBSIDIARIES
INDEX
PART I, FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets -
June 30, 1995 and September 30, 1994
Condensed Consolidated Statements of Operations -
Three Months Ended June 30, 1995 and 1994
Condensed Consolidated Statements of Operations -
Nine Months Ended June 30, 1995 and 1994
Condensed Consolidated Statements of Cash Flows -
Nine Months Ended June 30, 1995 and 1994
Notes to Condensed Consolidated Financial Statements
Item 2. Management's Discussion and Analysis of
Operations and Financial Condition
PART II, OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
SIGNATURES
(PAGE)
(TABLE)
SYSTEMS & COMPUTER TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(CAPTION)
June 30, September 30,
1995 1994
(UNAUDITED) (NOTE)
(S) (C) (C)
ASSETS
CURRENT ASSETS
Cash and short-term investments $ 19,222,000 $ 30,537,000
Receivables, including $41,045,000
and $34,640,000 of earned
revenues in excess of billings,
net of allowance for doubtful
accounts of $1,163,000 and
$1,228,000 65,275,000 52,406,000
Prepaid expenses and other receivables 7,690,000 5,124,000
------------ ------------
TOTAL CURRENT ASSETS 92,187,000 88,067,000
PROPERTY AND EQUIPMENT--net of
accumulated depreciation 25,471,000 20,002,000
CAPITALIZED COMPUTER SOFTWARE COSTS,
net of accumulated amortization
4,507,000 3,003,000
COST IN EXCESS OF FAIR VALUE OF NET
ASSETS ACQUIRED, net of accumulated
amortization 9,114,000 6,812,000
COVENANTS-NOT-TO-COMPETE, net of
accumulated amortization 1,974,000 2,541,000
OTHER ASSETS AND DEFERRED CHARGES 9,677,000 8,384,000
------------ ------------
TOTAL ASSETS $142,930,000 $128,809,000
============ ============
(FN)
(continued on next page . . . .)
(/FN)
(/TABLE)
(PAGE)
(TABLE)
SYSTEMS & COMPUTER TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(CAPTION)
June 30, September 30,
1995 1994
(UNAUDITED) (NOTE)
(S) (C) (C)
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 5,565,000 $ 3,660,000
Income taxes payable 479,000 985,000
Accrued expenses 11,167,000 10,097,000
Deferred revenue 11,093,000 14,086,000
------------ ------------
TOTAL CURRENT LIABILITIES 28,304,000 28,828,000
LONG-TERM DEBT, less current portion 32,090,000 34,500,000
STOCKHOLDERS' EQUITY
Preferred stock, par value $.10 per
share--authorized 3,000,000 shares,
none issued
Common stock, par value $.01 per share-
authorized 24,000,000 shares, issued
15,084,952 and 13,581,235 shares 151,000 136,000
Capital in excess of par value 56,315,000 40,869,000
Retained earnings 29,067,000 27,510,000
------------ ------------
85,533,000 68,515,000
Less
Held in treasury, 1,150,941 common
shares--at cost (2,959,000) (2,959,000)
Unearned compensation (38,000) (75,000)
------------ ------------
82,536,000 65,481,000
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $142,930,000 $128,809,000
============ ============
(FN)
Note: The condensed consolidated balance sheet at September 30, 1994 has
been derived from the audited financial statements at that date.
See notes to condensed consolidated financial statements.
(/FN)
(/TABLE)
(PAGE)
(TABLE)
SYSTEMS & COMPUTER TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(CAPTION)
For the Three Months Ended
June 30,
1995 1994
(S) (C) (C)
REVENUES:
OnSite services $17,115,000 $16,159,000
Software and hardware sales and services 20,240,000 13,304,000
Maintenance and enhancements 9,067,000 7,710,000
Interest and other revenue 283,000 273,000
------------ ------------
46,705,000 37,446,000
EXPENSES:
Cost of OnSite services 13,293,000 12,841,000
Cost of software and hardware sales
and services and maintenance
and enhancements 15,910,000 10,946,000
Selling, general and administrative 10,496,000 8,560,000
Charge for purchased
researh & development 8,700,000 0
Interest expense 494,000 628,000
------------ ------------
48,893,000 32,975,000
(Loss) income before income taxes (2,188,000) 4,471,000
Provision for federal and state
income taxes 2,475,000 1,565,000
------------ ------------
Net (Loss) Income $(4,663,000) $ 2,906,000
============ ============
Per common share:
Net (loss) income
Primary $(0.35) $ 0.22
Fully diluted $(0.35) $ 0.21
Common shares and equivalents outstanding
Primary 13,208,168 13,484,903
Fully diluted 13,208,168 15,784,903
(FN)
See notes to condensed consolidated financial statements.
(/FN)
(/TABLE)
(PAGE)
(TABLE)
SYSTEMS & COMPUTER TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(CAPTION)
For the Nine Months Ended
June 30,
1995 1994
(S) (C) (C)
REVENUES:
OnSite services $49,846,000 $47,512,000
Software and hardware sales and services 51,542,000 36,873,000
Maintenance and enhancements 25,931,000 22,247,000
Interest and other revenue 1,776,000 697,000
------------ ------------
129,095,000 107,329,000
EXPENSES:
Cost of OnSite services 38,803,000 37,486,000
Cost of software and hardware sales
and services and maintenance
and enhancements 41,642,000 30,402,000
Selling, general and administrative 30,544,000 25,821,000
Charge for purchased
research & development 8,700,000 0
Interest expense 1,800,000 1,893,000
------------ ------------
121,489,000 95,602,000
Income before income taxes 7,606,000 11,727,000
Provision for federal and state
income taxes 6,049,000 4,032,000
------------ ------------
Net Income $ 1,557,000 $ 7,695,000
============ ============
Per common share:
Net income
Primary $ 0.11 $ 0.57
Fully diluted $ 0.11 $ 0.56
Common shares and equivalents outstanding
Primary 13,623,718 13,404,383
Fully diluted 13,705,358 15,704,383
(FN)
See notes to condensed consolidated financial statements.
(/FN)
(/TABLE)
(PAGE)
(TABLE)
SYSTEMS & COMPUTER TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(CAPTION)
For the Nine Months Ended
June 30,
1995 1994
(S) (C) (C)
OPERATING ACTIVITIES
Net income $ 1,557,000 $ 7,695,000
Adjustments to reconcile net income to
net cash (used in) operating activities:
Charge for purchased research development 8,700,000 - -
Depreciation and amortization 6,661,000 5,231,000
Changes in operating assets and
liabilities:
(Increase) in receivables (12,668,000) (10,901,000)
(Increase) in prepaid expenses and
other receivables (2,548,000) (411,000)
(Decrease) increase in other accrued
expenses and liabilities (286,000) 1,401,000
(Decrease) in deferred revenue (3,491,000) (7,179,000)
Other, net 40,000 (316,000)
------------ ------------
NET CASH (USED IN) OPERATING ACTIVITIES (2,035,000) (4,480,000)
INVESTING ACTIVITIES
Purchase of property and equipment (7,583,000) (3,884,000)
Capitalized computer software costs (2,101,000) (850,000)
(Increase) in short-term investments - - (18,116,000)
Proceeds from sale or maturity of
investments held as available for sale 14,769,000 - -
Purchase of investments held as available
for sale (2,228,000) - -
Purchase of subsidiary assets, net of cash (892,000) - -
------------ ------------
NET CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES 1,965,000 (22,850,000)
FINANCING ACTIVITIES
Principal payments on long-term debt (270,000) - -
Proceeds from exercise of stock options 1,566,000 1,622,000
------------ ------------
NET CASH PROVIDED BY FINANCING ACTIVITIES 1,296,000 1,622,000
INCREASE(DECREASE) IN CASH & CASH EQUIVALENTS 1,226,000 (25,708,000)
CASH & CASH EQUIVALENTS-BEGINNING OF PERIOD 7,685,000 29,522,000
------------ ------------
CASH & CASH EQUIVALENTS-END OF PERIOD $ 8,911,000 $ 3,814,000
============ ============
SUPPLEMENTAL INFORMATION
Noncash investing and financing activities:
Conversion of subordinated debentures $ 3,000,000 - -
Purchase of subsidiaries--non-cash portion $12,352,000 - -
(FN)
See notes to condensed consolidated financial statements.
(/FN)
(/TABLE)
(PAGE)
SYSTEMS & COMPUTER TECHNOLOGY CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
June 30, 1995
The accompanying unaudited condensed consolidated financial statements
have been prepared in accordance with generally accepted accounting
principles for interim financial information and with the instructions
to Form 1O-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not
include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements. In
the opinion of management, all adjustments (consisting only of normal
recurring accruals) considered necessary for a fair presentation have
been included. For further information, refer to the consolidated
financial statements and footnotes thereto included in the Company's
Annual Report on Form 10-K for the year ended September 30, 1994.
Operating results for the three and nine-month periods ended June 30,
1995 are not necessarily indicative of the results that may be expected
for the year ending September 30, 1995.
NOTE A--RECLASSIFICATION
Certain prior year information has been reclassified to conform with
current year format.
NOTE B--CASH AND SHORT-TERM INVESTMENTS
(TABLE)
(CAPTION)
Jun. 30, 1995 Sep. 30, 1994
(S) (C) (C)
Cash and cash equivalents $ 8,911,000 $ 7,685,000
Short-term investments, plus
accrued interest of $69,000
and $209,000 10,311,000 22,852,000
----------- -----------
Cash and short-term investments $19,222,000 $30,537,000
(/TABLE)
Cash equivalents--Cash equivalents are defined as short-term highly
liquid investments with a maturity of three months or less at the date
of purchase.
Securities available-for-sale--Effective October 1, 1994, the Company
adopted the provisions of Statement of Financial Accounting Standards
No. 115, "Accounting for Certain Investments in Debt and Equity
Securities," ("FAS 115"). In accordance with the provisions of FAS 115,
the Company has classified marketable equity securities and debt
securities as available-for-sale. The available-for-sale portfolio
represents highly liquid investments available for current operations
and, accordingly, is classified as short-term investments.
Available-for-sale securities are stated at amortized cost which
approximates market.
The contractual maturities of securities held at June 30, 1995, are
shown below.
(TABLE)
(S) (C)
Due in one year or less $ 7,239,000
Due after one year through three years 3,003,000
-----------
$10,242,000
(/TABLE)
During the nine-month period ending June 30, 1995, the gross realized
gains on sales of available-for-sale securities totaled $80,000 and
gross realized losses on sales totaled $44,000.
NOTE C--INCOME (LOSS) PER COMMON SHARE
Primary income (loss) per share is computed using the weighted average
number of common shares outstanding, plus, to the extent dilutive,
common stock equivalents. If the inclusion of common stock equivalents
has an anti-dilutive effect in the aggregate, they are excluded from the
income per share calculation. Fully diluted income per share is based
on an increased number of shares that would be outstanding assuming the
exercise of stock options when the Company's stock price at the end of
the period is higher than the average stock price within the respective
period, plus the increased number of shares that would be outstanding,
assuming conversion of the 6 1/4 % convertible subordinated debentures.
Net income used in the calculation of fully diluted income per share
is adjusted for interest expense (net of tax) on the convertible
subordinated debentures. For the three months ended June 30, 1995 the
loss per share calculations did not include the common stock
equivalents or the effect of the convertible subordinated debentures
which were anti-dilutive. The fully diluted income per share
calculation for the nine-month period ending June 30, 1995 did not
include the anti-dilutive effect of the convertible subordinated
debentures.
NOTE D--ACQUISITION
On June 1, 1995, the Company acquired Adage Systems International, Inc.
(Adage), including all existing Adage software, technology and
operations for consideration of one million shares of SCT common stock
valued at approximately $10.9 million. Adage offers a newly developed
enterprise resource planning (ERP) system to multinational users in the
manufacturing and distribution industries. Under the terms of the
purchase agreement, the Company may be required to pay additional
consideration in either additional shares of common stock or a
combination of additional shares of common stock and cash, in the event
that the market price of the common stock approximately five years after
the closing is lower than a base price. The base price may not be lower
than $15 or higher than $50, and will be determined pursuant to a
formula tied to the pretax profits of Adage during the five-year period
commencing October 1, 1995. Certain future payments would result in an
adjustment to the purchase price. In conjunction with the acquisition,
which was accounted for as a purchase, the Company recorded a
non-recurring charge to operations of $8.7 million for in-process
research and development at the time of the acquisition. In addition,
the Company charged approximately $1.3 million to the cost of the
acquisition for incremental costs including professional fees and other
costs directly related to the acquisition. The purchase price was
allocated as follows:
(TABLE)
(S) (C)
Purchased software $ 2,800,000
Purchased research and development 8,700,000
Cost in excess of fair value of
assets acquired 2,648,000
Deferred taxes (1,176,000)
Fair value of net deficit acquired (746,000)
------------
Total purchase price $12,226,000
(/TABLE)
The pro forma results of operations, assuming the acquisition was made
at the beginning of each period presented, are not materially different
from historical results.
NOTE E--OTHER
Product development expenses (which are included in cost of software and
hardware sales and services and maintenance and enhancements), not
capitalized, aggregated $7,124,000 and $5,643,000 in the nine-month
periods ended June 30, 1995 and 1994, respectively.
(PAGE)
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF OPERATIONS AND FINANCIAL CONDITION
RESULTS OF OPERATIONS
(TABLE)
The following table sets forth: (a) income statement items as a
percentage of total revenues and (b) the percentage change for each item
from the prior-year comparative period.
(CAPTION)
% of Total Revenues % Change from
Prior Year
Three Mos. Nine Mos.
Ended Ended Three Mos. Nine Mos.
June 30, June 30, Ended Ended
1995 1994 1995 1994 June 30 June 30
(S) (C) (C) (C) (C) (C) (C)
REVENUES
OnSite services 37% 43% 39% 44% 6% 5%
Software and hardware
sales and services 43% 35% 40% 34% 52% 40%
Maintenance & enhancements 19% 21% 20% 21% 18% 17%
Interest and other revenue 1% 1% 1% 1% 4% 155%
---- ---- ---- ----
Total 100% 100% 100% 100% 25% 20%
EXPENSES
Cost of services, sales
and maintenance &
enhancements * 63% 63% 62% 63% 23% 19%
Selling, general and
administrative * 22% 23% 24% 24% 23% 18%
Charge for purchased
research and development 19% 0% 7% 0% -- --
Interest expense 1% 2% 1% 2% (21)% (5)%
(Loss) income before
income taxes -- 12% 6% 11% (149)% (35)%
(/TABLE)
The following table sets forth the gross profit for each of the
following revenue categories as a percentage of revenue for each such
category and the total gross profit as a percentage of total revenue
(excluding interest and other revenue). The Company does not separately
present the cost of maintenance and enhancements revenue as it is
impracticable to separate such cost from the cost of software and
hardware sales and services.
(TABLE)
(CAPTION)
Three Months Nine Months
Ended Ended
June 30, June 30,
1995 1994 1995 1994
(S) (C) (C) (C) (C)
GROSS PROFIT *
OnSite services 22% 21% 22% 21%
Software and hardware sales
and services and maintenance
and enhancements 46% 48% 46% 49%
TOTAL 37% 36% 37% 36%
(/TABLE)
* Reclassified to conform to current year format.
(PAGE)
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONT.)
Revenues
The 52% and 40% increases in software and hardware sales and services
revenue in the third quarter and the first nine months of fiscal year
1995 are attributable to an increased level of business in the US and
international utilities markets and the higher education market.
The maintenance and enhancements revenue increases of 18% and 17% in the
three and nine-month periods ending June 30, 1995 over the prior year
periods are the result of continued high annual renewal rates and a
growing installed base of clients, primarily in the higher education
market.
The increase in interest and other revenue in the nine-month period
ending June 30, 1995 is primarily attributable to a second quarter
$550,000 gain on the sale of an inactive product line.
Selling, General and Administrative Expenses
Selling, general and administrative expenses increased 23% and 16% in
the third quarter and first nine months of fiscal 1995, due to
continued increases in sales and marketing efforts.
Acquired Research and Development
Acquired research and development costs were purchased pursuant to the
Company's acquisition of Adage and charged to expense at the
acquisition date. These costs represent the estimated fair value of
specifically identified projects under development which did not meet
the applicable accounting criteria for capitalization.
Income Taxes
The provision for income taxes differs from the amount computed by
applying the statutory income tax rate to income before income taxes
as follows:
(TABLE)
(CAPTION)
Three Mos. Nine Mos.
Ended Ended
June 30, 1995 June 30, 1995
(S) (C) (C)
(Benefit) Provision computed
at statutory rate $ (766,000) $2,662,000
Non-deductible charge for purchased
research and development 3,045,000 3,045,000
Effect of state income tax 526,000 944,000
Research and development tax credit (256,000) (635,000)
Other (74,000) 33,000
----------- -----------
$2,475,000 $6,049,000
(/TABLE)
The provisions for income taxes for the three and nine-month periods
ending June 30, 1995 and 1994 relate primarily to current income taxes
payable. The increases in the provision for income taxes in the current
periods compared with prior-year periods are primarily the result of a
higher relative amount of research and development tax credits used in
the fiscal 1994 periods versus current periods.
LIQUIDITY, CAPITAL RESOURCES AND FINANCIAL POSITION
The Company's cash and short-term investments balances were $19.2
million and $30.5 million at June 30, 1995 and September 30, 1994,
respectively. The Company has a $20 million credit facility available
for general corporate purposes which expires in June 1996 with optional
annual extensions. At June 30, 1995, there were no borrowings
outstanding. As long as borrowings are outstanding and as a condition
precedent to new borrowings, the Company must comply with certain
covenants, and the Company is prohibited from paying any dividends other
than stock dividends.
At June 30, 1995, the Company had outstanding $31.5 million of
convertible subordinated debentures bearing interest at 6 1/4% and
maturing on September 1, 2003. The debentures are convertible into
common stock of the Company any time prior to redemption or maturity at
a conversion price of $15 per share, subject to adjustment in certain
events. The debentures are redeemable at any time after September 10,
1996 at prices decreasing from 104.2% of the principal amount at
September 1, 1996 to par on September 1, 2002. During the quarter ended
March 31, 1995, $3 million of the convertible subordinated debentures
were converted into 200,000 shares of common stock.
Effective October 1, 1994, the Company adopted the provisions of
Statement of Financial Accounting Standards No. 115, "Accounting for
Certain Investments in Debt and Equity Securities," ("FAS 115"). FAS
115 requires the Company to classify as available-for-sale and carry at
fair value all debt securities for which the Company does not have the
positive intent and ability to hold to maturity.
The Company believes that its cash and cash equivalents, short-term
investments, and borrowing arrangements, together with net cash provided
by continuing operations, should satisfy its needs for the foreseeable
future.
During the first nine months of 1995 the increase in receivables is due
to increases in revenues and the timing of billings on the Company's
software services contracts and software products. Property and
equipment balances at June 30, 1995 increased compared with September
30, 1994 as the result of the construction of a new office building in
Columbia, SC and improvements to an office building, purchased in
fiscal year 1994, in Malvern, PA.
In December 1994, the Company acquired the IntelliSource Software Group,
a division of the privately-held Management Analysis Company.
IntelliSource Software Group products serve the utility market. The
Company will pay a purchase price of $1.2 million in increments over a
four-year period with additional payments contingent upon performance.
Numerous factors could affect the Company's future operating results,
including general economic conditions, continued market acceptance of
the Company's products, and competitive pressures. Future revenue
growth and operating results are in part dependent upon accelerated
license fee revenue and related services growth from the Company's
international operations.
The Company's ability to sustain growth depends in part on the timely
development or acquisition of successful new and updated products. The
Company is investing in the development of new products and in
improvements to existing products. The Company has new products in
development for the utility and local government markets, as well as the
manufacturing and distribution industries. The costs of such products
have been capitalized.
(PAGE)
SYSTEMS & COMPUTER TECHNOLOGY CORPORATION AND SUBSIDIARIES
PART II
Item 6(b). Reports on Form 8-K
The registrant filed a current report on Form 8-K dated May 12, 1995.
Under Item 5, the registrant reported entering into an Agreement and
Plan of Merger and Reorganization with Adage Systems International, Inc.
(Adage), which provided for the acquistion by the registrant of all of
the Adage common stock.
The registrant filed a current report on Form 8-K dated June 1, 1995.
Under Item 5, the registrant reported that the acquisition of Adage
Systems International, Inc. (Adage) was completed as of June 1, 1995.
The consideration consisted of 1,000,000 shares of common stock ("Commom
Stock") of the registrant. In addition, the registrant will be required
to pay additional consideration to the shareholders of Adage, in either
additional shares of Common Stock or a combination of additional shares
of Common Stock and cash, in the event that the market price of the
Common Stock approximately five years after the closing is lower than a
base price.
(PAGE)
SYSTEMS & COMPUTER TECHNOLOGY CORPORATION AND SUBSIDIARIES
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
SYSTEMS & COMPUTER TECHNOLOGY CORPORATION
(Registrant)
Date: 08/14/95 /s/
_____________________________________
Eric Haskell
Senior Vice President, Finance and Administration,
Treasurer and Chief Financial Officer
(PAGE)
EXHIBIT 11 -- STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS
SYSTEMS & COMPUTER TECHNOLOGY CORPORATION AND SUBSIDIARIES
<TABLE>
<CAPTION>
Three mos. ended Nine mos. ended
June 30, June 30,
1995 1994 1995 1994
(In Thousands, except per-share data)
<S> <C> <C> <C> <C>
PRIMARY
Average shares outstanding 13,208 12,379 12,769 12,310
Net effect of dilutive stock
options-based on the
treasury stock method
using average market price 0 1,106 855 1,095
-------- -------- -------- --------
Total 13,208 13,485 13,624 13,405
======== ======== ======== ========
Net (loss) income $(4,663) $ 2,906 $ 1,557 $ 7,695
Net income (loss) per share $(0.35) $0.22 $0.11 $0.57
======== ======== ======== ========
FULLY DILUTED
Average shares outstanding 13,208 12,379 12,769 12,310
Net effect of dilutive stock
options-based on the
treasury stock method
using the end of period
market price, if higher
than average market price 0 1,106 936 1,095
Assumed conversion of 6 1/4 %
convertible subordinated
debentures 0 2,300 0 2,300
-------- -------- -------- --------
Total 13,208 15,785 13,705 15,705
======== ======== ======== ========
Net (loss) Income $(4,663) $ 2,906 $ 1,557 $ 7,695
Add 6 1/4 % convertible
subordinated debenture
interest, net of federal
income tax effect 0 377 0 1,145
-------- -------- -------- --------
Net (loss) income, as adjusted $(4,663) $ 3,283 $ 1,557 $ 8,840
Net (loss) income per share $(0.35) $0.21 $0.11 $0.56
======== ======== ======== ========
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The schedule contains summary financial information extracted from the
June 30, 1995 financial statements and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<CIK> 0000707606
<NAME> SYSTEMS & COMPUTER TECHNOLOGY CORP.
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1995
<PERIOD-END> JUN-30-1995
<CASH> 19,222,000
<SECURITIES> 0
<RECEIVABLES> 66,438,000
<ALLOWANCES> 1,163,000
<INVENTORY> 0
<CURRENT-ASSETS> 92,187,000
<PP&E> 39,866,000
<DEPRECIATION> 14,395,000
<TOTAL-ASSETS> 142,930,000
<CURRENT-LIABILITIES> 28,304,000
<BONDS> 32,090,000
<COMMON> 151,000
0
0
<OTHER-SE> 82,385,000
<TOTAL-LIABILITY-AND-EQUITY> 142,930,000
<SALES> 127,319,000
<TOTAL-REVENUES> 129,095,000
<CGS> 80,445,000
<TOTAL-COSTS> 119,689,000
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,800,000
<INCOME-PRETAX> 7,606,000
<INCOME-TAX> 6,049,000
<INCOME-CONTINUING> 1,557,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,557,000
<EPS-PRIMARY> 0.11
<EPS-DILUTED> 0.11
</TABLE>
